If you’re a small business owner, then chances are
that you have a limited budget and limited space to work with. So, let’s say
for example that you’re a furniture store. If your store offers several
contemporary collections, several ultra-modern collections and some eclectic
pieces as well as some early American collections scattered throughout you
business, do you really think you have enough of any single style to satisfy
the type of customer who’s looking for a specific style? The answer is most
likely no.
In fact, the most successful furniture
retailers in my area focus on a couple of things to attract a specific type of
customer, such as:
|
- Complete living room packages for under $2,000 or furnish your entire home for under $5,000.
- Long-term low or no
interest financing
- Fast delivery
within 3 days or less
- Lower prices for
packages
So, by narrowing down their
advertising, they attract the types of customers who purchase multiple pieces,
which in turn, drive the average ticket sale and profits up. They then offer
generous financing terms, which attracts customers with good credit and income,
while enticing them to spend more money because the customer has longer to pay
for it. Most importantly, the successful retailers in my area price their sales
so that the more merchandise the customer buys, the bigger the discount the
customer receives.
There is also another twist to these
retailers. See, although they attract customers to their business with generous
financing offers, they reward their salespeople handsomely for NOT selling the
long-term financing, therefore giving their salespeople an incentive to get
customers to pay off their balances in less than 30 days. And these are just a
few of the strategies that successful businesses use to attract customers
without focusing exclusively on price.
There is a common slogan in marketing
that states, “There are riches in niches.” Simply put, this slogan means you
need to determine who your most profitable, enjoyable and easy to attract
customer is, and then specialize in getting more of those customers to come
into your business and buy. The best way to do this is to create a U.S.P.
(Unique Selling Proposition) that compels your most profitable customer to come
back into your business again and again. In other words, a U.S.P. is the thing
that you're known for.
The first step in developing a U.S.P.
is to determine the profile of your most profitable customer. You will want to
know things like; how they found your business, where they live, what
newspapers and magazines they read etc.
Here's an example of some of the
information that you may discover about your prospects and customers:
- Wives initially
visited your business without their husbands.
- Recently married
- Had three kids
- Lived within five
miles of your business
- Spent between $800
- $1500
- Paid by Visa,
MasterCard or Discover
Once you have this information, you can
redesign your business to cater to more of the same types of customers that are
currently spending money in your business.
However, you can only use this
information to your advantage if you take the time to collect it in the first
place. Then you can dig deep and find
out who your customer is, what’s important to them and what they truly want.
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